High anxiety sends money chasing after the big boys

Risk-averse investors play it safe by targeting scale and quality

By

Mike Foster

Updated: July 18, 2011 3:27 pm GMT

Investors used to be confused, but now they’re not so sure. Across Europe, and beyond, they are struggling to work out ways of dealing with yet another outbreak of market volatility following a reassuring rally.

The bears argue the failure of politicians to deal with debt issues will prove as toxic to markets as the inability of former US president Herbert Hoover to fend off the Great Depression of the 1930s.